Correlation Between KLA Tencor and Atomera
Can any of the company-specific risk be diversified away by investing in both KLA Tencor and Atomera at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining KLA Tencor and Atomera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KLA Tencor and Atomera, you can compare the effects of market volatilities on KLA Tencor and Atomera and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in KLA Tencor with a short position of Atomera. Check out your portfolio center. Please also check ongoing floating volatility patterns of KLA Tencor and Atomera.
Diversification Opportunities for KLA Tencor and Atomera
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KLA and Atomera is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding KLA Tencor and Atomera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atomera and KLA Tencor is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on KLA Tencor are associated (or correlated) with Atomera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atomera has no effect on the direction of KLA Tencor i.e., KLA Tencor and Atomera go up and down completely randomly.
Pair Corralation between KLA Tencor and Atomera
Given the investment horizon of 90 days KLA Tencor is expected to generate 0.49 times more return on investment than Atomera. However, KLA Tencor is 2.06 times less risky than Atomera. It trades about 0.05 of its potential returns per unit of risk. Atomera is currently generating about 0.01 per unit of risk. If you would invest 38,053 in KLA Tencor on August 24, 2024 and sell it today you would earn a total of 25,902 from holding KLA Tencor or generate 68.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KLA Tencor vs. Atomera
Performance |
| Timeline |
| KLA Tencor |
| Atomera |
KLA Tencor and Atomera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KLA Tencor and Atomera
The main advantage of trading using opposite KLA Tencor and Atomera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KLA Tencor position performs unexpectedly, Atomera can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Atomera will offset losses from the drop in Atomera's long position.| KLA Tencor vs. Applied Materials | KLA Tencor vs. ASML Holding NV | KLA Tencor vs. Axcelis Technologies | KLA Tencor vs. Teradyne |
| Atomera vs. Axcelis Technologies | Atomera vs. inTest | Atomera vs. Lam Research Corp | Atomera vs. Photronics |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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